At 29, Wendy Kwek was earning as much as $250,000 in six months as a sales consultant. Then her company let her go over a salary dispute, and within four months she owed about $100,000. Her recovery, and the business she built from it, is the story behind a much-shared Singapore money-comeback profile.
Speaking at 36, when the original profile ran, the National University of Singapore business administration graduate said a degree had not prepared her for managing her own money. The questions below cover what happened and what she did next.
How did a high earner end up broke so quickly?
Her income had paid for a lifestyle to match: a new red BMW, trips to ten countries in two years, and Gucci handbags at around $2,000 each. When the salary stopped, the loans on her car and home did not.
She traced the problem to saving too little. By her own account, she spent about $1.20 for every dollar she made, which left her “rich in liabilities but poor in assets”. The car was repossessed, she took the bus, and she moved back into her parents’ home. Her marriage also ended around the same time, and she described it as the most stressful period of her life.
How did she clear the debt?
She began by admitting she was broke and had mismanaged her money. She then went after the most expensive debt first. Credit cards were the target because they charged about 24 per cent a year. She borrowed $15,000 from family and sold mutual funds for another $15,000 to pay them down.
The renovation loan, car loan and mortgage came next. She says she cleared everything within six months.
She also changed how she spent:
- She cut up her credit cards and sold the car.
- She gave up cable TV and home internet.
- She made herself wait three days before any purchase. Often she decided against buying at all.
Where did the business idea come from?
Being fired left her determined not to work for anyone else. With help from her parents, she attended seminars on entrepreneurship. She also heard talks from the Singapore Women Congress and Action Community for Entrepreneurship, where successful women, among them 77th Street founder Elim Chew, spoke about their mistakes and comebacks.
In 2001, while she was still paying off debts, she founded Executive Directions, which organised motivational seminars. Her start-up outlay was $52, the cost of a three-line newspaper advertisement recruiting marketers to sell places at talks run by other companies. The first seminar was a success. Speakers at the talks later included Anthony Robbins and Robert Kiyosaki, author of Rich Dad Poor Dad.
When did she make her first million?
She said the company grossed more than $1 million after three years. By the time of the original profile she described herself as earning “millions” but declined to give a figure. She said she had grown to seven businesses in six years, including a fine-dining restaurant and an events company.
Some old habits returned, but with changes. She bought another red BMW, this time a ten-year-old car paid for in cash. She lived in a rented three-bedroom apartment at International Plaza and rented out two of the rooms. Spare cash went into shares and insurance, which she called long-term vehicles for growing wealth.
Did she think education was worth the cost?
She did. She estimated that she had spent more than $100,000 on courses and books over six years, and she defended it with the line that if you think education is expensive, you should try ignorance. She also said she now respects each dollar she makes and that she still believes she deserves a good life, but with a different mindset from before.
What is she doing now?
Her own website describes her as a mentor, public speaker and coach working on entrepreneurship, persuasive speaking, selling skills, self-mastery and property investment. It lists her as CEO of Life Transformers Pte Ltd and Sustainable Earth Pte Ltd, and as international business development director at Hydrogen Era. It also says she owns or co-owns more than 100 properties in Singapore and abroad.
Executive Directions was an early step in that career. This research did not confirm whether it still operates, or what became of the restaurant and events businesses she mentioned.
Where can people in debt turn for help?
The original profile pointed readers to Credit Counselling Singapore, the Legal Aid Bureau, the Consumer Association of Singapore, Credit Bureau Singapore and the women’s group AWARE. Anyone in difficulty should check each organisation’s official website for its current contact details and services.